Employers across the U.S. added 177,000 jobs in April, new federal data shows, a sign the labor market is still humming despite ongoing economic uncertainty caused by the Trump administration’s trade policies.
The numbers
Job growth was stronger than expected in April, the Labor Department said Friday in its monthly employment report. Payroll gains exceeded economist forecasts of 135,000 last month, according to financial data firm FactSet.
The nation’s unemployment rate held steady at 4.2%, matching forecasts from analysts polled by FactSet.
What it means
The data suggests the labor market remains healthy despite rising concerns about how the Trump administration’s tariff policies will impact economic activity.
Health care companies, along with the transportation and warehousing sector, saw the largest gains in employment last month, adding 51,000 and 29,000 jobs, respectively. Federal employment declined by 9,000, up from 4,000 in March. Government layoffs have risen in recent months because of cuts by the Department of Government Efficiency, or DOGE, which the Trump administration touts as a cost-saving effort.
“April may have been the last month when we didn’t see the aggregate impact of trade war 2.0, DOGE job cuts and tight immigration policy. But look closely enough and there are hints, like the slight decline in manufacturing payrolls and another drop in federal government jobs,” Elyse Ausenbaugh, head of investment strategy at J.P. Morgan Wealth Management, said in an email.
Although the latest employment numbers suggest a steady job market, government data this week showed that more Americans are filing for unemployment benefits as layoffs mount. Jobless claims increased 18,000 to 241,000 for the week ending April 26, the highest level since mid-February, according to Oxford Economics.
“Continued claims are more volatile week to week, but remain elevated, signaling that workers who lose their job are facing challenges in finding new employment,” Nancy Vanden Houten, lead U.S. economist at Oxford Economics, said in a report.
In another important snapshot of the economy this week, the nation’s gross domestic product shrank 0.3% in the first three months of the year, down from growth of 2.4% in the previous quarter.